I updated my mac with Ilife08. When I uploaded it and I go to attach a picture to an email my photo button is not showing up so I can choose what photo to pick. Anyone have any idea what is wrong here?

Not sure what you mean by "photo button". Can you explain? You should not be trying to attach a photo from within the iPhoto library in finder. In '08, Apple changed the file structure to a package so that users would quit going into that file and corrupting their photos. Stay out of that folder!

The correct way to attach a photo to an email is via the "email" button in iPhoto. Select the photo you want to email, click on the email button and a new message will open for you with the pic attached. Or, you can drag a photo (or photos) to the desktop (or use the export function -- that way you can select the size of the attachment), start your email from you mail client, and attach the photo from your desktop.

Does that help? If not, please explain exactly what you are doing / trying to do and we can help some more.